BYTHE NUMBERS
Spartanburg, South Carolina
LOCAL MARKET MONITOR
15 Markets Still Right for “Budget Rentals” AFFORDABLE RENTAL MARKETS WITH PREMIUM ECONOMICS.
by Ingo Winzer
f you want to invest in a rental in San Francisco, you'll need a
• Solid job growth (better than national average)
25 percent higher. That is the Target Rent Range where you'll find the highest concentration of renters. In these 15 markets, a budget rental can produce a luxury return. •
I
million dollars. That's fine if you have the money, but many investors have a lower budget and a lower appetite for risk. Why put that that much money in one basket? Instead, you may want to consider the fifteen markets we're showing here, in which you can buy a rental property for $200,000 or less. These are budget markets, but they have premium economics:
• Rising home prices
• A moderate home price/rent ration (below 21) means that single-family homes don't need to be split into mul- tiple units to produce good returns. In budget markets you want to invest in properties at or a bit above the average price, and you'll want to rent in a range that goes from the average rent to about
IngoWinzer is president of Local Market Monitor, which analyzes conditions in 300 U.S. markets, using such economic data as home values and growth in employ- ment and population. Winzer, who has
analyzed real estate markets for more than 20 years, was a founder and executive vice president of First Research, an industry research company that was acquired by Dun & Bradstreet in March 2007. He is a graduate of MIT and holds an MBA in finance from Boston University. Winzer resides in Cambridge, Mass. www.localmarketmonitor.com.
• Growing populations
94 | think realty magazine :: september 2018
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